Opening up to Chinese investment is practice across Europe – PM

Prime Minister Joseph Muscat has played down claims that the sale of stake in Enemalta to a Chinese government-owned company, will be impinging on the State's energy sovereignty or affect its foreign policy decisions.

"I don't think there are any problems, everyone know the rules," he said of the memorandum of understanding signed with China Power Investments Corporation for a reported 20% stake in Enemalta.

"This is a free market that welcomes investors from other countries. Even in the UK, many of its strategic assets, like airports, or water authority Thames Water, opened their doors to Chinese investment," Muscat told the press after a visit to the Malta Stock Exchange.

Muscat also replied to questions put to him on Sunday by Opposition leader Simon Busuttil, saying that the PN leader will be able to discuss and vote on the proposal once legal amendments are tabled in the House.

"What we did was sign the 'promise of sale', quite the contrary to what the former administration did when it sold off Mid-Med Bank to HSBC and presented it as a fait accompli to the public.

"We will take the results of our negotiations and propose the laws that need to be changed," Muscat said, adding that he would give details on the Libyan oil and Chinese energy MoUs once parliament reconvenes.

Muscat also drew a clear line between Malta's foreign affairs and those of the EU, when asked about whether the Chinese investment would affect any diplomatic positions.

"Our foreign affairs have nothing to do with Europe's, and that's why we both have a foreign and EU affairs minister. EU affairs to me are an extension of our home affairs," Muscat said.

"We must also concentrate on matters affecting our region. Air Malta flies mainly to Europe, when we are on the doorstep or one of the greatest emerging economies. We have to look all around us to achieve growth, to the southern Mediterranean as well as the Far East. My forthcoming visit to Israel is an extension of this policy."

On Sunday, energy minister Konrad Mizzi said the ailing Enemalta must turn a profit within the next three years. Mizzi also said one of the ideas being explored is the sale to European markets of energy produced by Enemalta, as well as a company to assemble Chinese-made photovoltaic panels that will be sold in the EU market.

In a comment to MaltaToday on the development, the United States embassy also said it looked forward to learning more about the proposed investment.

"Open and transparent trading and investment frameworks benefit the world economy. This is not a zero-sum game: China is also an important trading and investment partner for the US," an embassy spokesperson said.

"Just as it's an important part of the US embassy's work to help build US-Maltese business ties, we understand that every government has the responsibility to develop economic relations with other countries in its citizens' best interest.

"We look forward to learning more about the proposed investment... we are also actively assisting US companies interested in participating in building a secure energy supply for the next generation of Maltese citizens."